XJO 0.99% 7,896.9 s&p/asx 200

XJO down moderately today -0.4% or 21.8 points after being down...

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    XJO down moderately today -0.4% or  21.8 points after being down more than 52 points in early trade.  The movement after the first hour was steadily to the upside.  That's positive but hardly convincing.

    The Index broke below horizontal support today at 5405.8 and then recovered to finish just above that level at 5408.5.
    The Index remains pinned between overhead resistance of the 20-Day MA and horizontal support.
    OK - that's looking at the major index and S/R levels.
    Time to look at some forward indicators.
    I've mentioned previously in my Weekly Report that the Health Sector has been the leading sector in our market for a long, long time.  When the leading sector starts to fall, it's time to think that the bull market is ending, or at least likely to stagger sideways.
    Here's the Health Sector chart:

    We have a confirmed Head/n/Shoulders top pattern.  XHJ has also broken below the 200-Day MA.  That's bearish.
    The best performing stock in the Health Sector has been Cochlear (COH).  Here's the COH chart:

    It has completed a clear double top in emphatic fashion today.  A big gap down and then further downside movement.
    The XDJ:XSJ Ratio is often a good guide to RISK.  When XSJ outperforms XDJ, we have a Risk-Off Scenario.



    So - clearly,we're now in a Risk-Off scenario. Even Blind Freddy can see that.  

    Then - we'll continue to fall?  Probably not.

    We're probably looking at a situation where the bulls will chance their luck once again.  And fail.

    Look for an upside move in the near future and then further downside action.

    RB.
 
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